Before You Borrow: Five Tips Worth Knowing

July 30, 2026

A short guide for any household that borrows — a home, a car, a renovation, or the card in your wallet.

Almost everyone borrows — for a house, a car, a kitchen, a vacation that landed on plastic. Yet most of us get exactly one piece of advice at the loan desk: “sign here.” These five tips — one for borrowing in general, then one per loan — are the ones we find ourselves repeating most.

ONE TIP PER LOAN

1. Any loan: shop it the way you’d shop anything else.

The tip: get at least three quotes. Rate-shopping several lenders for the same type of loan inside a short window is generally treated as a single inquiry by the major credit-scoring models — not a fresh “ding” per application.

Why it matters: people comparison-shop $80 sneakers and then take the first offer on six figures of debt. The fear of hurting your credit by shopping is mostly myth — and the second quote is often the leverage that improves the first.

2. Mortgage: compare APR to APR, not rate to rate.

The tip: the advertised rate ignores points and fees; the APR folds them in. Ask every lender for a Loan Estimate — the standardized three-page form exists precisely so offers line up side by side.

Why it matters: the lowest rate on the billboard can be the most expensive loan on the table. And remember: a preapproval is a ceiling, not a suggestion — borrow to your budget, not to your maximum.

3. Car: settle the price before you talk financing.

The tip: keep the two negotiations separate. Agree on the car’s price first, then compare the dealer’s financing against a preapproval from your own bank or credit union. The polite answer to “what monthly payment are you looking for?” is “let’s settle the price first.”

Why it matters: payment-first framing hides the term. Stretching a loan makes the payment smaller and the total cost larger — and can leave you owing more than the car is worth for years.

4. Credit cards: the most expensive money you can borrow.

The tip: find the APR on your statement. Card rates routinely run north of 20% — several times the cost of a mortgage or car loan — and most are variable, so they ratchet up when rates rise. Treat the card as a payment tool, not a loan: pay the balance in full inside the grace period, every month, and none of that rate machinery ever touches you.

Why it matters: at those rates a balance doesn’t linger — it grows. By the Rule of 72, a balance left at 24% doubles in about three years by itself. If you’re carrying one today, make clearing it the first financial goal on the list: paying off a 20%+ balance is the equivalent of earning 20%+ with certainty — a return no investment can promise.

5. Home equity: cheap because your house is the collateral.

The tip: home-equity loans and HELOCs price low for a reason — the house secures them. Know which you’re getting (fixed loan vs. variable line), what the rate can become, and when the interest-only period ends.

Why it matters: borrowed against the house, a kitchen that adds value is one thing; consolidated spending that will recur is another. Match the borrowing to something as durable as the debt.

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Hummer Mower Associates is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Registration as an investment advisor does not imply a certain level of skill or training. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. Hummer Mower Associates and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. Hummer Mower Associates and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. Hummer Mower Associates and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. Hummer Mower Associates and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice.